BlackBerry nipped by US appeal court

Page Tools

Bye, bye BlackBerry? The email device is caught up in a patents row.Photo: Jim Rice

A court decision has threatened the future of mobile
communications device BlackBerry in the US.

The US Circuit Court of Appeals in Washington renewed the
possibility that service to the wireless email device might be cut
off for most US users. Judges rejected at the weekend a request by
Research in Motion, the Canadian company that makes the BlackBerry,
to rehear its appeal of a patent infringement case brought by NTP,
the patent holder.

A three-judge panel of the court ruled in August that Research
in Motion had violated seven of NTP's patents. As part of that
case, NTP, whose only assets are wireless email-related patents,
had been granted an injunction banning BlackBerry sales in the US
and forcing Research in Motion to stop providing email services to
all US customers except governments.

While the court declined Research in Motion's request for a
complete rehearing by all 12 of its judges, it did order the panel
of three judges to review some aspects of NTP's patent claims.

Kevin Anderson, a lawyer for NTP, said the company would now ask
the court to apply the injunction to the patent claims that are no
longer under review. Those patents, he said, were broad enough to
stop Research in Motion from continuing service in the US, which
provides about 70 per cent of its revenue.

"The case is pretty much over," Mr Anderson said.

But Research in Motion said it would request that the court hold
off on any action while it asks the Supreme Court for a review,
although it acknowledged that such reviews were uncommon in patent
cases.

"RIM continues to believe this case raises significant national
and international issues warranting further appellate review," the
company said.

Shares of Research in Motion hit a 52-week low of $US64.55
($A85.25), down $US2.42.

With the backing of the Canadian Government, Research in Motion
has argued in court that NTP's claims do not apply to BlackBerry
software because it is held only on computers near its headquarters
in Waterloo, Ontario. Virginia-based NTP does not hold wireless
email patents in Canada.